AUD/JPY: in a risk-off correction

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/JPY is on course for a full on reversal of the uptrend that started from 0.79.20 territory on the 20th January this year.

    AUD/JPY was in supply at the turn of events when the RBA positioned themselves further into the dovish camp when they announced that they are leaving the door open for easing should conditions warrant it. The global economy is worsening and Central Banks are engaged in a currency war, investors are running for cover and AUD/JPY is correcting. The Aussie trade balance was a disappointment, and despite the BoJ's recnt move, engaging into negative deposit rates, the Yen relishes in its safe haven status.

    AUD/JPY levels

    Technically, the cross is testing the convergence of the 20 and 200 sma to the downside, while a break of the 200 sma is yet to come. The low has been 83.19 so far, but the downside was not sustained. RSI across all time frames allows for further downside with a target of S3 at 82.05.
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